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Volkswagen-Porsche merger to make both companies stronger: Volkswagen CEO

07-06-2012 03:18 BJT

BERLIN, July 5 (Xinhua) -- Germany's largest carmaker Volkswagen on Thursday said they believed their ongoing merger with Porsche's profitable car-manufacturing sector would have a positive impact on future earnings.

"We will concentrate all our strength on the operative business and the solid, profitable growth of the company," Volkswagen CEO Martin Winterkorn said, adding the move would benefit customers, employees and shareholders alike.

"Combining their operating business will make Volkswagen and Porsche even stronger -- both financially and strategically, going forward," Winterkorn stated.

Volkswagen announced in a statement late Wednesday that it is set to wind up its final takeover of Porsche AG by the end of the month, completing the capital restructuring of the cash-strapped luxury sports car manufacturer.

Porsche AG will become another full subordinate brand of the Volkswagen group from August 1, along with Audi, Volkswagen, Seat, Bugatti, Lamborghini, Bentley and truck makers MAN and Scania.

Volkswagen will spend an additional 4.46 billion euros (5.61 billion U.S. dollars) to finalize the purchase of the remaining 50.1 percent in Porsche AG's capital from Porsche SE. The takeover is expected to result in savings of some euro 700 million euros per year.

Volkswagen's shares were up 5.9 percent at 135.75 in Frankfurt trading after the deal was announced.

Porsche fell into great indebtedness after its failed takeover attempt of Volkswagen in 2009.


Editor:James |Source: Xinhua

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